Home News Hong Kong-based Coinsuper allegedly blocks customers’ withdrawals

Hong Kong-based Coinsuper allegedly blocks customers’ withdrawals

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According to reports, a cryptocurrency exchange in Hong Kong has halted all withdrawal requests. Coinsuper, the only government-licensed cryptocurrency corporation in China, was created in November 2017 by a former top UBS Group AG executive.

Based on a study of posts on the exchange’s primary Telegram chat group, Bloomberg reports that customers of the bourse have been unable to withdraw funds since late November.

Five consumers are said to have filed police reports when token withdrawals were allegedly suspended. Leaving them unable to retrieve $55,000 in cryptocurrency and money.

The public backlash over Coinsuper, which financed by Pantera Capital and led by Karen Chen, a former president of UBS China Inc., may force Hong Kong authorities to tighten its regulations. A senior executive for the city state’s Securities and Futures Commission indicated in September 2021 that further action is crucial. In order to combat cryptocurrency fraud. Signalling future guidelines on digital asset trading in the special administrative zone.

The administrator of Coinsuper’s Telegram discussion group apparently stopped responding to concerns about unsuccessful withdrawals last month. Then reappeared last week, requesting clients’ email addresses. Even after providing their information, some clients claimed that they received no follow-up.

According to analytics firm Nomics, the exchange processed $17.4 million worth of volume in the last 24 hours, down from a daily peak of $1.3 billion in late 2019.

One of the venture investors who sponsored Coinsuper told Bloomberg that their $1 million investment in the exchange totally cancelled. The venture capital firm stated that they had lost contact with the exchange’s management team six to eight months ago. And that chairman and CEO Karen Chen had stopped responding on WeChat. Several employees reportedly left the company between July and December, according to reports.

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